What is a Health Reimbursement Arrangement (HRA)?

by daziumdesign@gmail.com | Sep 8, 2021

An HRA is a reimbursement account set up and funded by your employer to cover eligible healthcare expenses as defined in the HRA Summary Plan Document. Unlike a healthcare FSA where the IRS defines the eligible services, your employer defines the services eligible for reimbursement from an HRA. Typically, an employer will reimburse deductible, coinsurance and copay expenses from your HRA but not services such as medical, dental or over the counter drugs. An HRA can also cover all or a portion of your prescription drug expenses. Check your employer’s HRA Summary Plan Document to see what types of services are covered under the HRA being offered by your employer.

What is the maximum contribution I can make to my HSA?

by daziumdesign@gmail.com | Sep 8, 2021

The IRS sets the maximum contribution limits for the HSA each year. The maximum annual contribution limit for 2018 is $3,450 if you are enrolled in Individual coverage and $6,850 if you are enrolled in Family coverage. Once you are over the age of 55, you can contribute an additional $1,000 above the standard annual maximum. (Note: if both spouses are over the age of 55, each spouse would need have their own HSA to contribute the $1,000 catch-up)

If your HDHP was effective on January 1st, the total amount you can contribute to your account is the maximum contribution amount set by the IRS. If your HDHP is effective after the first day of the month, you may make or receive a full year’s contribution to your HSA for partial year coverage as long as you maintain your HDHP enrollment for 12 months. If enrollment is less than 12 months, the tax benefit is lost and a 10% penalty is imposed.

Who is eligible to open and contribute to an HSA?

by daziumdesign@gmail.com | Sep 8, 2021

If you are enrolled in qualified High Deductible Health Plan (HDHP) – either through your employer or you have purchase and individual policy – you are most likely eligible to open and contribute to an HSA. Additional eligibility criteria include:

You must have a valid Social Security Number (SSN) and a primary residence in the U.S.
You cannot be covered by any other type of health plan, including Medicare Part A or Medicare Part B.
You cannot be covered by TriCare.
You cannot have accessed your VA medical benefits in the past 90 days (to contribute to an HSA).
You cannot be claimed as a dependent on another person’s tax return (unless it’s your spouse).
You must be covered by the qualified HDHP on the first day of the month.

16 things you had no idea you could purchase with your FSA

by daziumdesign@gmail.com | Jan 29, 2019

16 things you had no idea you could purchase with your FSA

January 29, 2019

Flexible Spending Accounts may be more flexible than you realized, and you don’t want to miss out. 2019 is expected to be an even bigger year for FSAs than the last, with 32 million accounts expected to open according to MarketWatch. What you may not know is there are several health-related necessities you can purchase using your FSA.

Because many FSAs have a “use-it-or-lose-it”” policy, at the end of each year users will lose any funds in the account that exceed $500. Using funds on these household products could prevent you from having unused funds and forfeiting them at the end of the year.

Items vary from first aid basics to personal care and while there are several, we’ve first listed 10 common products many people use that can be purchased with FSA funds. These items also don’t require a prescription from a doctor to be FSA-eligible.

Batteries

Lip balm

Reading glasses and contact lenses

Shoe insoles

Prenatal vitamins

Sunscreen

Thermometer

First Aid Kit

Hot/cold packs

Neck pillows

Local drug stores and pharmacies offer many of these products. There is also an online store with the above products, and many more, that are all FSA-eligible. You can make these purchases from your account without a prescription. As many individuals use these products regularly and will purchase them anyway, it becomes a perfect use of already allocated funds.

Purchasing these items is also a productive way to ensure you always have the supplies to maintain a healthy lifestyle. Many of these products assist with preventive care measures and encourage proactive self-care. Being proactive at home can help you save on medical costs in the future, which means your FSA is doing its job.

While the products listed above are frequently used by many Americans, there are other more specific medical items that are also FSA-eligible without a prescription. These 6 objects could be helpful for people with more specific medical conditions or needs.

Wheelchairs or other walking aids, such as crutches

Blood glucose monitors and testing strips

Compression socks

Blood pressure monitors

Motion sickness aids

Incontinence products

Braces (athletic or orthopedic)

Additionally, there are even more products that are FSA-eligible with a prescription from a doctor. To learn more about what is considered an FSA-eligible expense, you can revisit your NueSynergy FSA welcome kit or call us today at 855.890.7239.

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Using your HSA for retirement

by daziumdesign@gmail.com | Jan 6, 2019

What does retirement have to do with health care? A lot. And there’s an investment vehicle out there that can help with it.

Most people aren’t thinking about Health Savings Accounts (HSAs) as an investment option for retirement, but an HSA is one of the best options on the market. As the name implies, HSAs are designed to help individuals sock away cash for medical expenditures. HSAs offer several other benefits, such as:

100% of unused funds roll over year-after-year,
funds go with you even if you switch employers,
they can pay for the eligible expenses of your legal spouse and tax dependents regardless of their insurance, and
be used for Medicare premiums as well as qualified long-term care premiums.
Most employees use HSAs for short-term costs; however, building those funds long term is just as important. A recent study by the Employee Benefit Research Institute (EBRI) found that more Americans are turning to HSAs to cover medical expenses, but very few use them for retirement planning. The study also found that few people are investing their HSA funds for the long term, and even fewer are maxing out their HSA contributions. The research was based on nearly 6 million HSAs with $13 billion in combined assets. And regardless of any findings, most people will incur substantial health costs in retirement, for which HSAs can help.

It’s important for participants to understand the best way to use the HSA is by treating it as an investment tool, primarily because of the triple-tax advantage. As of just a few years ago, 4% of accounts had investments other than cash. Understanding the HSA’s investment potential won’t occur overnight for most people. It’s also unreasonable to expect everyone to have the wherewithal to use their account solely for investing.

However, by educating participants and employers on the long-term value of the HSA, it’s realistic to expect a behavioral shift and an uptick in participants using the HSA as an investment tool for retirement. A key point here is to start using and funding HSAs now, while contributing close to the annual limits if possible.

What is a Health Reimbursement Arrangement (HRA)?

What is the maximum contribution I can make to my HSA?

Who is eligible to open and contribute to an HSA?

16 things you had no idea you could purchase with your FSA

16 things you had no idea you could purchase with your FSA

January 29, 2019

Using your HSA for retirement

How Health Plans Ensure Claims and Appeals Notices Are Culturally and Linguistically Appropriate